he answer is that while the housing price appreciation we’re witnessing is reminiscent of a bubble, you’re unlikely to conclude the same if you dig into the fundamentals. As it turns out, the underlying conditions of today’s housing market are on a much more solid foundation than they were 15 years ago. But it’s not all smooth sailing.
According to Bankrate’s chief financial analyst, Greg McBride, CFA, a price stabilization is more likely than a steep decline. “While the current speed of home price growth is not sustainable in the long term, prices are not at risk of a severe decline,” he said.
The consensus from analysts is that while there may be some signs of a bubble, rather than crashing, the housing market will likely cool over the coming months. The National Association of Realtors predicts a 3% increase in property prices in the coming year. The Association’s Chief Economist, Lawrence Yun, thinks the housing industry will continue to perform well in 2023 and beyond, but he does not anticipate outperforming recent performance